first-ever global peso bonds

[leonleon]

Simula ng pagbabago?

http://www.philstar.com/Article.aspx...CategoryId=200

RP issues first-ever global peso bonds
(philstar.com) Updated September 10, 2010 01:55 PM -

MANILA, Philippines – The Philippine government has issued the first-ever global peso bonds, which a senior official described as a “breakthrough accomplishment of the Aquino administration.”

Secretary Cesar Purisima broke the news in a text message to philstar.com, saying the country has issued $1 billion worth of peso bonds.

The demand, Pursima said, was for $13.3 billion.

“As they say, the demand is 13 times oversubscribed,” he said.

“In addition, we priced the $1 billion (P109 billion) debut global peso bond, due January 2012, at 5 percent yield, which is 23 percent lower than expected,” Purisima added.

According to Purisima, this is a landslide vote of confidence by the global in the Aquino administration’s economic agenda and in the Philippines’ macroeconomic fundamentals.

[safeorigin]

oh man... derivatives. we're doomed!

[tidus1203]

We have been issuing bonds for a long long time... They are not derivatives, derivatives are assets that get their value from the value of another asset. Kaya nga derivatives...

Examples are OPTIONS. They are derivatives of equities. Credit Default Swaps are derivatives of loans etc etc

[marg]

Ayy Diyos Mio, UTANG na naman.

P4,580,000,000,000.00 na nga utang natin, dadagdagan pa.

One day, it will all come back to us. Tsk Tsk

[safeorigin]

We have been issuing bonds for a long long time... They are not derivatives, derivatives are assets that get their value from the value of another asset. Kaya nga derivatives...

Examples are OPTIONS. They are derivatives of equities. Credit Default Swaps are derivatives of loans etc etc

was thinking a few steps ahead actually

[tidus1203]

Ayy Diyos Mio, UTANG na naman.

P4,580,000,000,000.00 na nga utang natin, dadagdagan pa.

One day, it will all come back to us. Tsk Tsk

There is not enough taxes to cover all the expenses. We need to deficit spend! Manag mana tayo kay Uncle Sam, we idolize him so much even the way we handle our money!

[safeorigin]

[uls]

may mali sa article

due January 2012

dapat 2021

[uls]

too much spin from the Finance secretary

know why the global peso bond offering was successful?

currently, there's strong demand for emerging market equities and bonds (US, Europe funds are chasing yield in emerging markets coz they can't get any returns in the developed world)

the bonds are exempt from 20% withholding tax (if you own RP bonds, you know you gotta pay 20% WT. If it wasnt for the exemption, foreign interest for the global peso bonds won't be that high)

and the 5% low interest rate Purisima is so proud of, it's still higher than what Malaysia and Thailand has to pay

spin

[tidus1203]

Speaking about SPIN! Isa pa itong si Pnoy...

After Philippine stocks soared to an all-time high on Thursday, President Benigno Simeon "Noynoy" Aquino III said he is confident that the country's economy will recover from the impact of the August 23 hostage crisis on tourism.

In an ambush interview on Friday, Aquino said he was elated that the Philippine Stock Exchange index (PSEi) gained 97.98 points or 2.56 percent to close at 3,902.56 Thursday.

Aquino said this has been the highest PSEi since 1987, during the term of his late mother, President Corazon Aquino.

http://www.gmanews.tv/story/200728/p...-all-time-high

Regardless stock prices are irrelevant for our 12% of people unemployed (the likely number is higher) and people who are hungry. Mga mayayaman lang may lakialam sa stock prices!